Legal Question in Real Estate Law in Washington

monetary liability

If my homeowners association is sued and loses, who is ultimately liable for damages when homeowners association has no funds.


Asked on 3/23/09, 12:34 am

2 Answers from Attorneys

Amir John Showrai The Pacific Law Firm, PLLC

Re: monetary liability

The short answer is the homeowners. The longer answer is that it depends on how it comes to pass that the suit and judgment were incurred. For example, if one homeowner did something that caused the suit and even if the HOA was liable as well, the HOA may counter-sue to avoid liability or to have the specific homeowner pay a larger proportion of the judgment. It can get complicated, that's for sure, and I'd need more specifics to give a better answer than that.

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Answered on 3/23/09, 12:34 pm
Earl Morriss Land Law Washington, PLLC

Re: monetary liability

It is highly unlikely that the homeowners are going to be liable - in Washington, the Condominium Act requires the homeowners to form a corporation...and one of the main purposes of a corporation is to create a new legal entitiy...a corporation rather than an individual. As long as the corporate formalities are followed it is very difficult for anyone to pierce that corporate "veil". Suing a condominium association for monetary damages is most likely a losing battle. The exception might be some sort of very bad tort by an individual - but that would really have to fall on the individual.

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Answered on 4/22/09, 11:21 pm


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